It is hereby declared to be the public policy of the state of
West Virginia and a responsibility of the state of West Virginia,
for the benefit of the people of the state and the improvement of
their health, welfare and living conditions, to provide hospitals
with appropriate means at reasonable cost to maintain, expand,
enlarge and establish health care, hospital and other related
facilities and to provide hospitals with the ability to refinance
indebtedness. This article shall provide a method to enable
hospitals to provide or maintain at reasonable cost pursuant to
reasonable terms the facilities, structures and services needed to
accomplish the purposes of this article, all to the public benefit
and good, to the extent and in the manner provided in this article.

The Legislature finds and hereby declares that the
responsibility of the state as outlined above cannot be effectively
met without the hospital loan program as provided for in this
article.

WVC 16 - 29 A- 3
§16-29A-3. Definitions.
As used in this article, unless the context clearly requires
a different meaning:

(1) "Authority" means the West Virginia Hospital Finance
Authority created by section four of this article, the duties,
powers, responsibilities and functions of which are specified in
this article;

(2) "Board" means the West Virginia Hospital Finance Board
created by section four of this article, which shall manage and
control the authority;

(3) "Bond" means a revenue bond issued by the authority to
effect the purposes of this article;

(4) "Construction" means and includes new construction,
reconstruction, enlargement, improvement and providing furnishings
or equipment;

(5) "Direct provider of health care" means a person or
organization whose primary current activity is the provision of
health care to individuals and includes a licensed or certified
physician, osteopath, dentist, nurse, podiatrist or physician's
assistant or an organization comprised of these health
professionals or employing these health professionals;

(6) "Hospital" means a corporation, association, institution
or establishment for the care of those who require medical
treatment, which may be a public or private corporation or
association, or state-owned or operated establishment and specifically includes nursing homes which are licensed under
chapter sixteen of this code or those facilities certified under
the Social Security Act as intermediate care facilities for
individuals with an intellectual disability;

(7) "Hospital facilities" means any real or personal property
suitable and intended for, or incidental or ancillary to, use by a
hospital and includes: Outpatient clinics; laboratories;
laundries; nurses', doctors' or interns' residences; administration
buildings; facilities for research directly involved with hospital
care; maintenance, storage or utility facilities; parking lots and
garages; and all necessary, useful or related equipment,
furnishings and appurtenances and all lands necessary or convenient
as a site for the foregoing and specifically includes any capital
improvements to any of the foregoing. "Hospital facilities"
specifically includes office facilities not less than eighty
percent of which are intended for lease to direct providers of
health care and which are geographically or functionally related to
one or more other hospital facilities, if the authority determines
that the financing of the office facilities is necessary to
accomplish the purposes of this article;

(8) "Hospital loan" means a loan made by the authority to a
hospital and specifically includes financings by the authority for
hospital facilities pursuant to lease-purchase agreements,
installment sale or other similar agreements;

(9) "Note" means a short-term promise to pay a specified amount of money, payable and secured as provided pursuant to this
article and issued by the authority to effect the purposes of this
article;

(10) "Project costs" means the total of the reasonable or
necessary costs incurred for carrying out the works and
undertakings for the acquisition or construction of hospital
facilities under this article. "Project costs" includes, but is
not limited to, all of the following costs: The costs of
acquisition or construction of the hospital facilities; studies and
surveys; plans, specifications, architectural and engineering
services; legal, organization, marketing or other special services;
financing, acquisition, demolition, construction, equipping and
site development of new and rehabilitated buildings;
rehabilitation, reconstruction, repair or remodeling of existing
buildings; interest and carrying charges during construction and
before full earnings are achieved and operating expenses before
full earnings are achieved or a period of one year following the
completion of construction, whichever occurs first; and a
reasonable reserve for payment of principal of and interest on
bonds or notes of the authority. "Project costs" shall also
include reimbursement of a hospital for the foregoing costs
expended by a hospital from its own funds or from money borrowed by
the hospital for such purposes before issuance and delivery of
bonds or notes by the authority for the purpose of providing funds
to pay the project costs. "Project costs" also specifically includes the refinancing of any existing debt of a hospital
necessary in order to permit the hospital to borrow from the
authority and give adequate security for the hospital loan. The
determination of the authority with respect to the necessity of
refinancing and adequate security for a hospital loan is
conclusive;

(11) "Revenue" means any money or thing of value collected by,
or paid to, the authority as principal of or interest, charges or
other fees on hospital loans or any other collections on hospital
loans made by the authority to hospitals to finance, in whole or in
part, the acquisition or construction of any hospital facilities or
other money or property which is received and may be expended for
or pledged as revenues pursuant to this article;

(12) "Veterans skilled nursing facility" means a skilled
nursing care facility constructed and operated to serve the needs
of veterans of the Armed Forces of the United States who are
citizens of this state.

WVC 16 - 29 A- 4
§16-29A-4. Creation of authority and board; status and members
of board.
The West Virginia hospital finance authority is hereby
created. The authority is a body corporate and a governmental
instrumentality of the state. The exercise by the authority of the
powers conferred by this article and the carrying out of its
purposes and duties shall be deemed and held to be, and are hereby
determined to be, essential governmental functions and for a public
purpose.

The authority shall be controlled, managed and operated by the
seven-member board known as the West Virginia hospital finance
board, which is hereby created. The board shall consist of the
director of the state department of health and the state treasurer
as members ex officio of the board. The other five members of the
board shall be appointed by the governor, by and with the advice
and consent of the Senate, and shall serve terms of two, three,
four, five and six years, respectively. The successor of each such
appointed member shall be appointed for a term of six years in the
same manner as the original appointments were made, except that any
person appointed to fill a vacancy occurring prior to the
expiration of the term for which his predecessor was appointed
shall be appointed only for the remainder of such term. No more
than three of the appointed board members shall at any one time
belong to the same political party. Appointed board members may be
reappointed to serve additional terms.

All members of the board shall be citizens of the state. Each
appointed member of the board, before entering upon his duties, shall comply with the requirements of article one, chapter six of
this code and give bond in the sum of twenty-five thousand dollars
in the manner provided in article two, chapter six of this code.
The governor may remove any board member for cause as provided in
article six, chapter six of this code. The director of the state
department of health and the state treasurer may each appoint a
deputy to serve as a member of the board in their respective
absences. Such deputy shall be a person in the office of the
director of the state department of health or the state treasurer,
as the case may be, and shall serve at his pleasure.

Four members of the board shall constitute a quorum, and the
affirmative vote of four members shall be necessary for any action
taken by vote of the board. No vacancy in the membership of the
board shall impair the rights of a quorum by such vote to exercise
all the rights and perform all the duties of the board and the
authority.

Annually, the board shall elect one of its appointed members
as chairman and another as vice chairman and shall appoint a
secretary-treasurer, who need not be a member of the board. The
person appointed as secretary-treasurer, including a board member
if he is so appointed, shall give bond in the sum of fifty thousand
dollars in the manner provided in article two, chapter six of this
code.

Members of the board shall not receive compensation for
services but shall be entitled to the necessary expenses, including
traveling expenses, incurred in the discharge of their duties. Any
payments for compensation and expenses shall be paid from the funds of the authority, after appropriations and authorization by the
Legislature, and no liability or obligation shall be incurred by
the authority beyond the extent to which moneys are available from
funds of the authority.

There shall also be a director of the authority appointed by
the board.

WVC 16 - 29 A- 5
§16-29A-5. Powers of authority.

The authority is hereby granted, has and may exercise all the
powers necessary or appropriate to carry out and effectuate the
purposes of this article, including the following:

(a) To sue and be sued in its own name and plead and be
impleaded in its own name; to have a seal and alter the same at its
pleasure; to make, execute and deliver contracts, indentures,
agreements, conveyances and other instruments necessary or
convenient to the exercise of its powers; to adopt and, from time
to time, amend and repeal bylaws necessary and proper for the
legislation of its business and rules and regulations to implement
and make effective its powers and duties, such rules and
regulations to be promulgated in accordance with the provisions of
chapter twenty-nine-a of this code; and to maintain a principal
office. Any actions against the authority shall be brought in the
circuit court of Kanawha County, in which the principal office of
the authority shall be located. When the cost under any contract
or agreement to be entered by the authority, other than
compensation for personal services, involves an expenditure of more
than three thousand dollars, the authority shall make a written
contract with the lowest responsible bidder after public notice
published as a Class II legal advertisement in compliance with the
provisions of article three, chapter fifty-nine of this code, the
publication area for such publication to be the county wherein the
work is to be performed or which is affected by the contract, which
notice shall state the general character of the work and the
general character of the materials to be furnished, the place where plans and specifications therefor may be examined and the time and
place of receiving bids: Provided, That a contract, indenture or
agreement for a hospital loan is not subject to the foregoing
requirements, and the authority may enter into such contract,
indenture or agreement pursuant to negotiation and upon such terms
and conditions and for such period as it finds to be reasonable and
proper under the circumstances and as necessary to best effectuate
the purposes of this article: Provided,however, That a contract
or agreement entered into by a hospital to which any hospital loan
is made is not subject to the foregoing requirements. The
authority may reject any and all bids. A bond with good and
sufficient surety, approved by the authority, shall be required of
all contractors in an amount equal to at least fifty percent of the
contract price, conditioned upon the faithful performance of the
contract.

(b) To solicit and accept gifts, grants, loans and other aids
from any person, corporation or governmental agency.

(c) To make hospital loans, to participate in the making of
hospital loans, to undertake commitments, to execute and be the
beneficiary under deeds of trust, to enter into security
agreements, to sell hospital loans and the security therefor at
public or private sale, to modify or alter hospital loans and
security therefor, to discharge hospital loans and security
therefor, to order a trustee's sale under a deed of trust or
commence an action to protect or enforce a right conferred upon it
by a law, deed of trust, hospital loan, contract, indenture or
other agreement and to bid for and purchase property which was the subject of a deed of trust at a trustee's sale or at any other sale
and to acquire or take possession of that property and in that
event complete, administer, pay the principal of and interest on
any obligations incurred in connection with such property, dispose
of and otherwise deal with the property in a manner necessary or
desirable to protect the interest of the authority in the property.
The hospital loans made by the authority may be secured by deeds of
trust or security agreements, as applicable, or not, as the
authority determines.

(d) To lend money to hospitals for the purpose of refinancing
any outstanding indebtedness of a hospital if the authority
determines the refinancing is necessary to realize the purposes of
this article. A hospital loan made pursuant to this subsection
shall not exceed the amount of the principal of and interest and
redemption premium, if any, on the indebtedness to be refinancedwhich has not been repaid, plus the marketing, financing, legal and
other costs incurred in connection with the refinancing and the
issuance of bonds or notes of the authority issued in whole or in
part to provide funds to make the hospital loan described in this
subdivision, including the costs of funding a bond reserve and
paying capitalized interest on the bonds or notes for a period not
to exceed one year after the issuance of such bonds or notes. The
determination of the authority under this subsection shall be
conclusive.

(e) To charge, impose and collect fees and charges in
connection with its hospital loans, commitments and servicing,
including reimbursement of the costs of financing by the authority, service charges, insurance premiums and an allocable share of the
operating expenses of the authority and to make provision for
increasing the same, if necessary, as the authority determines is
reasonable and approved by the board.

(f) To acquire, hold and dispose of real or personal property
necessary or appropriate for the accomplishment of the purposes of
this article.

(g) To procure insurance against a loss in connection with its
property, assets or activities.

(h) To borrow money for its purpose, including its initial
operating expense and issue its bonds or notes for the money and
provide for the rights of the holders of the bonds or notes and to
secure the bonds or notes by a deed of trust on or an assignment or
pledge of any or all of its properties, including any part of the
security for its hospital loans. The state shall not be liable on
any bonds or notes of the authority; the bonds or notes shall not
be a debt of the state; and each bond or note shall contain on its
face a statement to that effect.

(i) To invest any funds not required for immediate use or
disbursement, at its discretion, in any of the following:

(1) Direct obligations of, or obligations the timely payment
of the principal of and interest on which is guaranteed by, the
United States of America;

(2) Bonds, debentures, notes or other evidences of
indebtedness issued by any of the following agencies: Banks for
cooperatives; federal intermediate credit banks; federal home loan
bank system; Export-Import Bank of the United States; federal farm credit banks; federal land banks; federal financing banks; the
Federal National Mortgage Association or the Government National
Mortgage Association;

(3) Public housing bonds issued by public agencies or
municipalities and fully secured as to the payment of both
principal and interest by a pledge of annual contributions under an
annual contributions contract or contracts with the United States
of America; or temporary notes issued by public agencies or
municipalities or preliminary loan notes issued by public agencies
or municipalities, in each case fully secured as to the payment of
both principal and interest by a requisition or payment agreement
with the United States of America;

(4) Certificates of deposit secured by obligations of the type
specified in subparagraph (1);

(5) Direct obligations of, or obligations the timely payment
of the principal of and interest on which is guaranteed by, the
state of West Virginia;

(6) Direct and general obligations of any other state within
the territorial United States, to the payment of the principal of
and interest on which the full faith and credit of such state is
pledged: Provided, That at the time of their purchase, such
obligations are rated in either of the two highest rating
categories by a nationally recognized bond-rating agency;

(7) Any fixed interest bond, note or debenture of any
corporation organized and operating within the United States:
Provided, That such corporation has a minimum net worth of fifteen
million dollars and its securities or its parent corporation's securities are listed on one or more of the national stock
exchanges: Provided,however, That (i) such corporation has earned
a profit in eight of the preceding ten fiscal years as reflected in
its statements, (ii) such corporation has not defaulted in thepayment of principal of or interest on any of its outstanding
funded indebtedness during its preceding ten fiscal years, and
(iii) the bonds, notes or debentures of such corporation to be
purchased are rated "AA" or the equivalent thereof or better than
"AA" or the equivalent thereof by at least two or more nationally
recognized rating services such as Standard and Poor's, Dun &
Bradstreet or Moody's;

(8) Fully collateralized or insured bankers acceptances or
time deposits drawn on and accepted by commercial banks; and

(9) Repurchase agreements of commercial banks or trust
companies fully secured by obligations of the type specified in
subparagraph (1) and having on the date of such agreement a fair
market value equal to at least one hundred percent of the principal
amount of such repurchase agreement.

(j) To engage necessary personnel and to engage the services
of private consultants for rendering professional and technical
assistance and advice.

(k) To establish or increase reserves from moneys received or
to be received by the authority to secure or to pay the principal
of and interest on bonds issued by the authority pursuant to this
article.

(l) To lease, or lease with an option to purchase, to others
its real or personal property, including hospitals and hospital facilities, for such rentals and upon such terms and conditions as
the authority may deem advisable.

(m) To do all acts necessary and proper to carry out the
powers expressly granted to the authority in this article.

WVC 16 - 29 A- 6
§16-29A-6. Hospital loans.
The authority may lend money to hospitals for the
acquisition, construction, improvement or alteration of hospital
facilities. A hospital loan shall not be made unless the
authority is reasonably satisfied that there will be made
available to the hospital from the hospital loan and other
sources all the funds necessary to pay all project costs; that
the hospital facilities will produce revenues sufficient,
together with any other revenues pledged, to meet the principal
of and interest on the hospital loan, other costs, expenses and
charges in connection with the hospital loan and other charges or
obligations of the hospital which may be prior or equal to the
hospital loan, promptly as they become due; and that the hospital
is otherwise soundly financed. The hospital loan may be secured
by a deed of trust on or a security interest in, as applicable,
property of the hospital, including the hospital facilities, and
may provide for the appointment of a receiver to operate the
hospital facilities in case of default. A hospital loan made
pursuant to this section shall not exceed the project costs as
determined by the authority. A hospital loan shall be secured in
a manner, be repaid in a period not exceeding fifty years and
bear interest at a rate, all as determined by the authority,
which interest rate may be decreased or increased so that it
shall in no event be less than the rate paid by the authority on
notes, renewal notes or bonds issued to fund the hospital loan.
Such terms and provisions shall be set forth in a loan agreement
between the authority and the hospital.

WVC 16 - 29 A- 7
§16-29A-7. Bonds and notes.
(a) The authority periodically may issue its negotiable bonds
and notes in a principal amount which, in the opinion of the
authority, shall be necessary to provide sufficient funds for the
making of hospital loans, including temporary loans during the
construction of hospital facilities, for the payment of interest on
bonds and notes of the authority during construction of hospital
facilities for which the hospital loan was made and for a
reasonable time thereafter and for the establishment of reserves to
secure those bonds and notes.

(b) The authority periodically may issue renewal notes, may
issue bonds to pay notes and, if it considers refunding expedient,
to refund or to refund in advance bonds or notes issued by the
authority by the issuance of new bonds pursuant to the requirements
of section thirteen of this article.

(c) The authority may, upon concurrent resolution passed by
the Legislature, authorize the issuance of negotiable bonds and
notes in a principal amount which are necessary to provide
sufficient funds for the construction, reconstruction, renovation
and maintenance of one or more skilled nursing facilities that will
only serve the skilled nursing needs of West Virginia veterans who
have performed active duty in an active component of the armed
forces or performed active service in a reserve component of the
armed forces. These bonds issued by the authority may not exceed
ten million dollars. The revenues pledged for the repayment of principal and interest of these bonds shall include the net profit
of the veterans instant lottery scratch-off game authorized by
section nine-a, article twenty-two, chapter twenty-nine of this
code excluding all architectural fees and associated project costs
transferred pursuant to that section.

(d) Except as may otherwise be expressly provided by the
authority, every issue of its notes or bonds shall be special
obligations of the authority, payable solely from the property,
revenues or other sources of or available to the authority pledges
therefor.

(e) The bonds and the notes shall be authorized by resolution
of the authority, shall bear the date and shall mature at time or
times, in the case of any such note or any renewals thereof, not
exceeding seven years from the date of issue of the original note
and in the case of any bond not exceeding fifty years from the date
of issue, as the resolution may provide. The bonds and notes shall
bear interest at rate or rates, be in a denomination, be in a form,
either coupon or registered, carry registration privileges, be
payable in the medium of payment and at place or places and be
subject to the terms of redemption as the authority may authorize.
The bonds and notes of the authority may be sold by the authority,
at public or private sale, at or not less than the price the
authority determines. The bonds and notes are executed by the
chairman and vice chairman of the board, both of whom may use
facsimile signatures. The official seal of the authority or a facsimile thereof shall be affixed to or printed on each bond and
note and attested, manually or by facsimile signature, by the
secretary-treasurer of the board, and any coupons attached to any
bond or note shall bear the signature or facsimile signature of the
chairman of the board. In case any officer whose signature, or a
facsimile of whose signature, appears on any bonds, notes or
coupons ceases to be an officer before delivery of the bonds or
notes, the signature or facsimile is nevertheless sufficient for
all purposes the same as if he or she had remained in office until
the delivery; and, in case the seal of the authority has been
changed after a facsimile has been imprinted on the bonds or notes,
the facsimile seal will continue to be sufficient for all purposes.

(f) A resolution authorizing bonds or notes or an issue of
bonds or notes under this article may contain provisions, which are
a part of the contract with the holders of the bonds or notes, as
to any or all of the following:

(1) Pledging and creating a lien on all or any part of the
fees and charges made or received or to be received by the
authority, all or any part of the moneys received in payment of
hospital loans and interest on hospital loans and all or any part
of other moneys received or to be received, to secure the payment
of the bonds or notes or of any issue of bonds or notes, subject to
those agreements with bondholders or noteholders which then exist;

(2) Pledging and creating a lien on all or any part of the
assets of the authority, including notes, deeds of trust and obligations securing the assets, to secure the payment of the bonds
or notes or of any issue of bonds or notes, subject to those
agreements with bondholders or note holders which then exist;

(3) Pledging and creating a lien on any loan, grant or
contribution to be received from the federal, state or local
government or other source;

(4) The use and disposition of the income from hospital loans
owned by the authority and payment of the principal of and interest
on hospital loans owned by the authority;

(5) The setting aside of reserves or sinking funds and the
regulation and disposition thereof;

(6) Limitations on the purpose to which the proceeds of sale
of bonds or notes may be applied and pledging the proceeds to
secure the payment of the bonds or notes or of any issue of the
bonds or notes;

(7) Limitations on the issuance of additional bonds or notes
and the terms upon which additional bonds or notes may be issued
and secured;

(8) The procedure by which the terms of a contract with the
bondholders or noteholders may be amended or abrogated, the amount
of bonds or notes the holders of which must consent thereto and the
manner in which the consent may be given; and

(9) Vesting in a trustee or trustees the property, rights,
powers, remedies and duties which the authority considers necessary
or convenient.

WVC 16 - 29 A- 8
§16-29A-8. Trustee for bondholders; contents of trust
agreement.
In the discretion of the authority, any bonds, including
refunding bonds, or notes issued by the authority may be secured
by a trust agreement between the authority and a corporate
trustee, which trustee may be any trust company within or without
the state. Any such trust agreement may contain provisions as
set forth in section seven of this article with respect to the
resolution. All expenses incurred in carrying out the
provisions of any trust agreement may be treated as a part of the
costs of the operation of the hospital loan program provided for
hereunder. Any such trust agreement, indenture or resolution
authorizing the issuance of bonds or notes may provide the method
whereby the general administrative overhead expenses of the
authority shall be allocated among the several hospitals to which
hospital loans have been made.

WVC 16 - 29 A- 9
§16-29A-9. Use of funds by authority; restrictions thereon.
All moneys, properties and assets acquired by the authority,
whether as proceeds from the sale of bonds or notes or as
revenues or otherwise, shall be held by it in trust for the
purposes of carrying out its powers and duties and shall be used
and reused in accordance with the purposes and provisions of this
article. Such moneys shall at no time be commingled with other
public funds. Such moneys, except as otherwise provided in any
resolution authorizing the issuance of bonds or notes or in any
trust agreement securing the same, or except when invested
pursuant to subsection nine of section five of this article,
shall be kept in appropriate depositories and secured as provided
and required by law. The resolution authorizing the issuance of
such bonds or notes of any issue or the trust agreement securing
such bonds or notes shall provide that any officer to whom, or
any banking institution or trust company to which, such moneys
are paid, shall act as trustee of such moneys and hold and apply
them for the purposes hereof, subject to the conditions this
article and such resolution or trust agreement provide.

WVC 16 - 29 A- 10
§16-29A-10. Security for bonds and notes.
A resolution authorizing the issuance of bonds or notes
under this article may provide that the principal of an interest
on the bonds or notes issued shall be secured by a lien on any or
all of the fees and charges made or received, or to be received,
by the authority from the hospital in connection with the
hospital loan, on any or all of the money received in payment of
the hospital loan and interest on the hospital loan, on any or
all of investment earnings or profits on any of these sources or
on any or all of the security held for that payment, and on other
funds or assets of the authority pledged for such purpose.

WVC 16 - 29 A- 11
§16-29A-11. Enforcement of payment and validity of bonds and
notes.
(a) The provisions of this article and any resolution,
indenture, deed of trust or security agreement shall continue in
effect until the principal of and interest on the bonds or notes
of the authority have been fully paid, and the duties of the
authority under this article and any resolution, indenture, deed
of trust or security agreement shall be enforceable by any
bondholder or noteholder by mandamus, trustee's sale under the
deed of trust or other appropriate action in any court of
competent jurisdiction.

(b) The resolution authorizing the bonds or notes shall
provide that such bonds or notes shall contain a recital that
they are issued pursuant to this article, which recital shall be
conclusive evidence of their validity and of the regularity of
their issuance.

WVC 16 - 29 A- 12
§16-29A-12. Pledges; time; liens; recordation.
Any pledge made by the authority shall be valid and binding
from the time the pledge is made. The money or property so
pledged and thereafter received by the authority shall
immediately be subject to the lien of the pledge without any
physical delivery thereof or further act. The lien of any such
pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract or otherwise against the
authority, irrespective of whether such parties have notice
thereof.

WVC 16 - 29 A- 13
§16-29A-13. Refunding bonds.
Any bonds issued hereunder and at any time outstanding may
at any time and from time to time be refunded by the authority by
the issuance of its refunding bonds in such amount as it may deem
necessary to refund the principal of the bonds so to be refunded,
together with any unpaid interest thereon; to provide additional
funds for the purposes of the authority; and to pay any premiums
and commissions necessary to be paid in connection therewith. Any
such refunding may be effected whether the bonds to be refunded
shall have then matured or shall thereafter mature, either by
sale of the refunding bonds and the application of the proceeds
thereof for the redemption of the bonds to be refunded thereby or
by exchange of the refunding bonds for the bonds to be refunded
thereby: Provided, That the holders of any bonds so to be
refunded shall not be compelled without their consent to
surrender their bonds for payment or exchange prior to the date
on which they are payable or, if they are called for redemption,
prior to the date on which they are by their terms subject to
redemption. Any refunding bonds issued under the authority of
this article shall be payable from the revenues out of which the
bonds to be refunded thereby were payable, from other moneys or
from the principal of and interest on or other investment yield
from investments or proceeds of bonds or other applicable funds
and moneys, including investments of proceeds of any refunding
bonds, and shall be subject to the provisions contained in
section seven of this article and shall be secured in accordance
with the provisions of sections seven and eight of this article.

WVC 16 - 29 A- 14
§16-29A-14. Purchase and cancellation of notes or bonds.
The authority, subject to such agreements with noteholders
or bondholders as may then exist, shall have power, out of any
funds available therefor, to purchase bonds, including refunding
bonds, or notes of the authority.

If the bonds or notes are then redeemable, the price of such
purchase shall not exceed the redemption price then applicable
plus accrued interest to the next interest payment date thereon.
If the bonds or notes are not then redeemable, the price of such
purchase shall not exceed the redemption price applicable on the
first date after such purchase upon which the bonds or notes
become subject to redemption plus accrued interest to such date.
Upon such purchase, such bonds or notes shall be canceled.

WVC 16 - 29 A- 15
§16-29A-15. Vested rights; impairment.
The state pledges and agrees with the holders of any bonds
or notes issued under this article that the state will not limit
or alter the rights vested in the authority to fulfill the terms
of any agreements made with the holders thereof, or in any way
impair the rights and remedies of the holders until the bonds or
notes, together with the interest thereon, and all costs and
expenses in connection with any action or proceeding by or on
behalf of such holders, are fully met and discharged. The
authority is authorized to include this pledge and agreement of
the state in any agreement with the holders of such bonds or
notes.

WVC 16 - 29 A- 16
§16-29A-16. Bonds and notes not debt of state, county,
municipality or any political subdivision; expenses
incurred pursuant to article.
Bonds, including refunding bonds, and notes issued under the
authority of this article and any coupons in connection therewith
shall not constitute a debt or a pledge of the faith and credit or
taxing power of this state or of any county, municipality or any
other political subdivision of this state, and the holders and
owners thereof shall have no right to have taxes levied by the
Legislature or the taxing authority of any county, municipality or
any other political subdivision of this state for the payment of
the principal thereof or interest thereon, but such bonds and notes
shall be payable solely from the revenues and funds pledged for
their payment as authorized by this article unless the notes are
issued in anticipation of the issuance of bonds or the bonds are
refunded by refunding bonds issued under the authority of this
article, which bonds or refunding bonds shall be payable solely
from revenues and funds pledged for their payment as authorized by
this article. All such bonds and notes shall contain on the face
thereof a statement to the effect that the bonds or notes, as to
both principal and interest, are not debts of the state or any
county, municipality or political subdivision thereof, but are
payable solely from revenues and funds pledged for their payment.

All expenses incurred in carrying out the provisions of this
article shall be payable solely from funds provided under the
authority of this article. Such article does not authorize the
authority to incur indebtedness or liability on behalf of or payable by the state or any county, municipality or any other
political subdivision thereof.

WVC 16 - 29 A- 17
§16-29A-17. Negotiability of bonds and notes.
Whether or not the bonds or notes are of such form or
character as to be negotiable instruments under the uniform
commercial code, the bonds or notes authorized to be issued by
this article are negotiable instruments within the meaning of and
for all the purposes of the uniform commercial code, subject only
to the provisions of the bonds or notes for registration.

WVC 16 - 29 A- 18
§16-29A-18. Bonds and notes legal investments.
The provisions of sections nine and ten, article six,
chapter twelve of this code to the contrary notwithstanding, the
bonds and notes of the authority are securities in which all
public officers and bodies of this state, including the West
Virginia state board of investments, all municipalities and other
political subdivisions of this state, all insurance companies and
associations and other persons carrying on an insurance business,
including domestic for life and domestic not for life insurance
companies, all banks, trust companies, societies for savings,
building and loan associations, savings and loan associations,
deposit guarantee associations and investment companies, all
administrators, guardians, executors, trustees and other
fiduciaries and all other persons whatsoever who are authorized
to invest in bonds or other obligations of the state may properly
and legally invest funds, including capital, in their control or
belonging to them.

WVC 16 - 29 A- 19
§16-29A-19. Exemption from taxation.
The exercise of the powers granted to the authority by this
article will be in all respects for the benefit of the people of
the state, for the improvement of their health, safety,
convenience and welfare and is a public purpose. As the
operation and maintenance of hospital facilities will constitute
the performance of essential governmental functions, the
authority shall not be required to pay any taxes or assessments
upon any property acquired or used by the authority or upon the
income therefrom. All bonds and notes of the authority, and all
interest and income thereon, shall be exempt from all taxation by
this state and any county, municipality, political subdivision or
agency thereof, except inheritance taxes.

WVC 16 - 29 A- 20
§16-29A-20. Certificate of need.

Before the authority makes a hospital loan to any hospital,
and as a condition precedent to the authority's making any such
hospital loan, a certificate of need shall be obtained pursuant to
article two-d of this chapter, or a determination shall be secured
from the agency issuing the certificate of need that a certificate
is not necessary for the hospital facilities with respect to which
the hospital loan is proposed to be made: Provided, That if a
certificate of need is not necessary for a specific project or
projects, then the health care cost review authority created by
section five, article twenty-nine-b of this chapter must be
consulted by the authority concerning the availability of financial
resources to both repay the loan and to fund the ongoing operations
of the project or projects. The opinion of the health care cost
review authority, while not determinative on the question of the
issuance of the hospital loan, shall be entitled to substantial
weight before the authority and shall be overcome only by clear and
convincing evidence to the contrary. This section shall not apply
to refinancing of present indebtedness or to refunding or advance
refunding of bonds, notes, or for reimbursement of projects costs.

WVC 16 - 29 A- 21
§16-29A-21. Nondiscrimination; hospital facilities.
The authority shall require that use of hospital facilities
assisted under this article shall be open to all regardless of
race, religion, sex or creed, and that contractors and
subcontractors engage in the construction or alteration of such
hospital facilities shall provide an equal opportunity for
employment, without discrimination as to race, religion, sex or
creed. The hospital to which any hospital loan is made shall
covenant with the authority that the nondiscrimination provision
shall be enforced.

WVC 16 - 29 A- 22
§16-29A-22. Personal liability; persons executing bonds or
notes.
Neither the members of officers of the board nor officers or
employees of the authority nor any person executing the bonds or
notes shall be liable personally on the bonds or notes or be
subject to any personal liability or accountability by reason of
the issuance thereof.

WVC 16 - 29 A- 23
§16-29A-23. Financial interest in contracts prohibited;
penalty.
No officer, member or employee of the board or the authority
shall be financially interested, directly or indirectly, in any
contract of any person with the authority, or in the sale of any
property, real or personal, to or from the authority. This
section does not apply to contracts or purchases of property,
real or personal, between the authority and any governmental
agency. If any officer, member or employee of the board or the
authority has such financial interest in a contract or sale of
property prohibited hereby, he shall be guilty of a misdemeanor,
and, upon conviction thereof, shall be fined not more than one
thousand dollars, or imprisoned in the county jail not more than
one year, or both fined and imprisoned.

WVC 16 - 29 A- 24
§16-29A-24. Meetings and records of authority to be kept
public.
All meetings of the authority shall be open to the public,
and the records of the authority shall be open to public
inspection at all reasonable times, except as otherwise provided
in this section. All final actions of the authority shall be
journalized, and such journal shall also be open to the
inspection of the public at all reasonable times. Any records or
information relating to secret processes or secret methods of
manufacture or production which may be obtained by the authority
or other persons acting under authority of this article are
confidential and shall not be disclosed.

WVC 16 - 29 A- 25
§16-29A-25. Cumulative authority as to powers conferred;
applicability of other statutes and charters.
This article shall be construed as granting cumulative
authority for the exercise of the various powers herein
conferred, and neither the powers nor any bonds or notes issued
hereunder shall be affected or limited by any other statutory or
charter provision now or hereafter in force, other than as may be
provided in this article, it being the purpose and intention of
this article to create full, separate and complete additional
powers. The various powers conferred herein may be exercised
independently and notwithstanding that no bonds or notes are
issued hereunder.

WVC 16 - 29 A- 26
§16-29A-26. Liberal construction.
This article, being necessary for and to secure the public
health, safety, convenience and welfare of the citizens of the
state, shall be liberally construed to effect the public purposes
hereof.

Note: WV Code updated with legislation passed through the 2016 Regular Session
The West Virginia Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.